- DOJ disbands National Cryptocurrency Enforcement Team (NCET)
- It ceases investigations into crypto exchanges, mixers, and wallets for user actions
- Policy shift aligns with President Trump’s pro-crypto stance
- It aims to reduce regulatory oversight of the digital asset industry
- Even crypto enthusiasts can take a different view: freedom or the risks of increased financial crime?
- The price of the Tornado Cash token (TORN) rose nearly 7.3% after the news
The U.S. Department of Justice, DOJ disbands National Cryptocurrency Enforcement Team, ceasing investigations into crypto exchanges, mixers, and wallets for user actions. The crypto community has become polarized – some see this as the next step towards long-awaited deregulation and freedom for crypto, while others see it as a threat of crypto abuse and the possibility of crypto crimes. While TORN rose nearly 7.3% after the news.
More About the Shift at DOJ and the National Cryptocurrency Enforcement Team (NCET)
According to a Monday memo issued by the Department of Justice (DOJ), the Trump administration has disbanded the National Cryptocurrency Enforcement Team (NCET). Deputy Attorney General Todd Blanche wrote that the NCET will be “disbanded effective immediately,” stating that the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) will offer guidance to DOJ officials and work with the crypto and digital asset industry.
According to the memo:
“The Justice Department will no longer pursue litigation or enforcement actions that have the effect of superimposing regulatory frameworks on digital assets while President Trump’s actual regulators do this work outside of the punitive criminal justice framework.”
So this should continue with Donald Trump’s crypto initiatives, which also refer to the SEC’s regulatory changes and Crypto Task Force initiatives. But now it’s a more radical measure that is more dangerous. Some might say it’s excessive deregulation, but some would call it long-awaited.
For example, Peter Van Valkenburgh, CoinCenter Executive Director emphasized the positivity of this vector:
Presumably, this affects a multitude of crypto platforms and products like several crypto exchanges, mixers, and wallets. And first, it affected probably the most famous case, Tornado Cash. TORN rose 10%, but later fell to 7.9% in the last 24 hours, and is now trading at ~$6.2.
Conclusion
Another pro-crypto measure from Trump, but now more drastic. It is likely to cause continued controversy even among the pro-crypto community, although much initially depends on your stance on the degree of regulation that is acceptable.
Stay tuned for updates, be adaptive in the rapidly evolving regulation, financial, and crypto landscape, and keep your strategy grounded, balanced, and beneficial.
